Innovation and the Quest to Feed the World

While global levels of hunger and malnutrition have dropped significantly in the last few decades, there are concerns that agricultural advancements and R&D spending are not enough to unlock the true agricultural innovation needed to feed the burgeoning 10 billion people. Government spending on agricultural R&D has decreased in the last decade and many of the large-scale NGO activities are now focusing on environmental and sustainability issues. With the evolution of corporate social responsibility (CSR) initiatives, coupled with the growth of agricultural startups and venture funds, the role of agriculture and hunger relief has dramatically changed in the last several decades. A new focus on sustainable growth, capabilities development, and innovative approaches for smallholder farmers has created an environment of continuous innovation that has replaced many of the donation-based hunger relief initiatives of the past. Large corporations are working with local NGOs and support groups to tackle global hunger on a local basis. In the next decade, we should see more socially minded entrepreneurs that will work with NGOs and private businesses to solve the issues of smallholder farming and provide the opportunity to introduce both digital and agricultural innovations at the local level to further the quest to feed the world.

The Quest for Innovation: Addressing User Needs and Value Creation

In agricultural and agrifood systems, like in many other economic sectors, the main innovation drivers have traditionally been (1) technological advances and (2) research and development. When innovation fails to address the actual needs of clients and end-users, however, satisfaction gaps are created. The result is that investors receive insufficient returns and end-users receive less than expected value. The consequences of failure can be deeper than just financial, however. Successful innovation in agriculture and agrifood systems is critical to secure affordable, nutritious, and safe food for all people. Rapid innovation is needed to address the serious challenge of climate change and to reduce agriculture’s global environmental footprint. The overarching goal of agricultural innovation should be to deliver high value to end-users and improve their quality of life and well-being. To achieve this goal, organizations must first understand the jobs to be done concept for their end-users. They must take into account user satisfaction gaps and frustrations. Understanding user needs is as important as producing technology to finding innovative solutions. This is true around the globe; in industry and public sectors, and in both developed and developing countries. This chapter explains why investing in innovation is very different from succeeding at it. Ultimately, the examples, ideas, and guidelines in this chapter can be brought to bear on agricultural innovation efforts (and any other economic sector), to make them more productive and worthwhile for end-users and investors/funders. The information herein is meant to increase the likelihood of successful innovation efforts at both profit-seeking firms and nonprofit organizations.

Innovating at Marketing and Distributing Nutritious Foods at the Base of the Pyramid (BoP): Insights from 2SCALE, the Largest Incubator for Inclusive Agribusiness in Africa

Toward Sustainable Clusters in Agribusiness through Learning in Entrepreneurship (2SCALE) is the largest incubator for inclusive agribusiness in Africa. Part of this program supports agribusinesses in developing nutritious products that specifically target base of the pyramid (BoP) consumers in local markets. This product development process is complemented with marketing and distribution strategies to ensure these products reach BoP consumers. In an effort to build sustainable and scalable business cases, all strategies are first tested and implemented in short-term pilots. The lessons learned during the implementation of these pilots are presented in this chapter. The goal of this chapter is to showcase the approach, results, and lessons learned while implementing pilots. Under the 2SCALE program, more than 20 agribusinesses have developed new nutritious products and have run marketing and distribution pilots. The lessons derived from this experience can be useful for both agribusinesses themselves and incubating programs. The first section of this chapter highlights the opportunity at the BoP and the rationale behind implementing pilots, including the importance of BoP-specific marketing and distribution strategies. The second one runs through the approach and stages of developing and implementing pilots. This section is followed by an overview of tools and strategies being used in pilot development, whereas the final two sections explain lessons learned and the next steps.

Productivity in Agriculture for a Sustainable Future

The Malthusian predictions of the future have not come to pass due largely to innovative agricultural technologies and practices that stimulated significant gains in agricultural productivity. This chapter examines the linkages between innovation, productivity, and sustainability. The definition of agricultural productivity, measured as total factor productivity (TFP), will be explained, as well as the contribution of innovation to global TFP growth and the contribution of TFP to sustainable food and agriculture systems. To illustrate these connections, this chapter highlights innovative technologies and practices used by crop and livestock producers in the United States, Colombia, India, Kenya, and Vietnam. These cases demonstrate how advanced seed technologies, improvements in soil health and nutrient management, mechanization, and an emphasis on animal health drive productivity growth around the world. Many of these cases feature partnerships between the public sector, private sector, and producers where innovations and new practices are used to increase productivity, incomes, food security, and nutrition. Creating an enabling policy environment is essential for agricultural innovation, productivity, and sustainability; the chapter gives examples of public policies that stimulate such productivity: investing in public sector research and development (R&D), embracing science-based technologies, and establishing smart regulatory environments. The chapter includes a discussion of innovation, productivity, and the Sustainable Development Goals (SDGs).

Open Innovation and Value Creation in Crop Genetics

The development of cultivars exhibiting improved climate resilience and containing effective input and agronomic traits and their adoption by growers and acceptance by supply chains, consumers, and society remain essential drivers of a successful agricultural strategy directed to feed the world and overcome the challenges brought by nature, an increasingly stringent regulatory environment, and an ever-growing population. In order to deliver on the daunting challenge of providing affordable, nutritious food to humankind, while reducing agriculture’s environmental footprint, new innovation models are needed. Open innovation is being adopted by seed companies in order to tap into the vast pool of human talent available beyond their boundaries and increase their ability to generate, adopt, develop, and bring to market novel technologies while building upon the increasing global community of innovators and harnessing the resources of venture capitalists. In addition, open innovation can help streamline product development processes, as well as lead to the exploration of novel markets which would otherwise go unexploited. At the same time, open innovation provides the means for other firms and entrepreneurs to gain access to technologies which would be beyond the scope of their development abilities but which can be leveraged to create significant value for their own customers and markets. This chapter provides an updated perspective on the most salient aspects of open innovation. Though its main focus is crop genetics and the development of improved cultivars, the general principles discussed also apply to other activities associated with the value chains linking agriculture and customers.

Digital Technologies, Big Data, and Agricultural Innovation

Innovation in agricultural practices and food system performance is urgently needed to effectively respond to societal challenges of today and tomorrow. Expanding population, a changing climate, environmental distress, and the need for more nutritious and safe food supplies are only a few of those challenges. In response, new tools employing digital technology and big data are being developed and applied within agricultural production systems. This chapter explores the potential for the effective implementation of such tools and their prospective impact. While these tools provide the means to measure agricultural production activities as they happen, it is important to stress that adoption hinges on both technological and economic factors. The tools of digital technologies and big data are intriguing because their implementation is a key form of innovation and because the use of these technologies can foster additional innovation by making existing innovation systems even more effective.

Rethinking Adoption and Diffusion as a Collective Social Process: Towards an Interactional Perspective

Agricultural development is looked at as a process in which the adoption of innovations plays an important role. In this context, there has been considerable interest in understanding how adoption processes work. This chapter starts from the observation that adoption has been conceptualised in most research and development efforts as a process at the level of individuals and/or individual households, resulting in the dominance of social-psychological modes of thinking. Drawing on case experiences and recent theories of innovation, this paper points towards the critical role that several types of interdependencies play in adoption processes, which leads to the conclusion that in many instances, adoption must be regarded as a collective rather than an individual process. It is therefore important to complement and re-orient our thinking about adoption and resort to more sociological and interactional concepts and explanations. After a discussion of relevant concepts, the chapter concludes with some reflection on how this perspective may inspire a different way of approaching two topical issues in the realm of agricultural innovation: scaling and ICT4Ag.

Development of Sustainable Business Models for Innovation in the Swedish Agri-sector: Resource-Effective Producer or Stewardship-Based Entrepreneur?

This chapter focuses on the development of sustainable business models for innovation in the Swedish agri-sector. This is important for several reasons. Many of society’s challenges are linked to social, environmental and economic aspects of agriculture, and numerous agri-companies have been reduced to subcontractors with little influence, and are struggling with low profitability. Previous research regarding agri-companies have mainly focused on production and cost-efficiency aspects. Research regarding sustainable innovation and sustainable business models in the agri-sector is limited to date. To fill in this gap, the aim of this chapter is to illustrate and analyse how Swedish agri-companies develop sustainable business models. An integrated theoretical framework combining research regarding sustainability-oriented innovation and sustainable business model archetypes has been developed in order to collect and analyse the eight agri-companies in the study. Swedish agri-companies focus not only on optimization but also on their organizational transformation and systems building when developing sustainable innovation. They have developed diversified business models. A common, important factor is to adopt stewardship roles. Further, the value intention of agri-entrepreneurs is a relevant factor when developing sustainable business models.